Ford, Anhui Zotye to jointly invest US$754m in Chinese JV

November 9th 2017 | Multiple countries | Passenger vehicles | Ford

Ford Motor Co plans to form its third joint venture in China, this time with Anhui Zotye Automobile Co Ltd, a Chinese electric car-maker. The two automakers will jointly invest Rmb5bn (US$754m) in Zotye Ford Automobile Co Ltd, according to media reports on November 9th citing Ford's group vice president, Peter Fleet.

Ford and Zotye will each own a 50% stake in Zotye Ford, which will produce small electric vehicles (EVs) under a new brand. The joint venture also plans to build a plant in the Zhejiang province of China.

In addition, the newly formed company will explore the development of mobility service solutions for young customers in China amid rising demand, without elaborating further. Ford had been exploring an association with Zotye since August. At the time, the US automaker said that the agreement with Zotye would help expand its presence in China, which is the world's largest market for EVs.

Ford already operates joint ventures in China with two local automakers, Changan Automobile Co Ltd and Jiangling Motors Corp. The company aims to launch a broad range of EVs in China by 2025, under its "China electrification strategy".